People should stick to the facts and not digress from what is important. Is 3com a good investment or not?
First, this is not 1997. Back then, 1)3Com had an old product line. 2) They where trying to integrate u.s. robotics (good acquisition, but paid too much). 3) They did not have Bruce Claflin. 4) Lacked a clear focus of what they wanted the company to become. 5) Didn't have a clear focus on inventory management.
Today, 3Com has one of its best product cycles in a long time. No integration issues. They have a great manger in Bruce Claflin (also, well respected). Despite the last quarter, they have a great focus on where they want to be (palm, wireless, SAN, calbe modems, ect.). They have a clearly defined focus on inventory management.
They clearly were hampered by serious pricing pressures in this quarter. Pricing was an issue in every one of their respective markets. I'm not justifying the way they manage the street (they can do a lot better job). But, I also believe that the 4th quarter will be better.
Keeping our emotions out of it, we have all been hurt by this stock at one time or another, is this a good buy now? That is the question. For people looking for quick money stick to the internet stocks. The people I want a response from are serious investors, not gamblers playing the irrationality of this market place.
Please respond? |
